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Raytheon Awarded JSOW-C Full-Rate Production Contract

    TUCSON, Ariz., Feb. 7, 2005  /PRNewswire/ -- Raytheon Company (NYSE: RTN)
has been awarded a $55.7 million full-rate production contract to provide the
newest version of the Joint Standoff Weapon (JSOW-C) to the U.S. Navy.

    Raytheon Missile Systems will provide 189 AGM-154C JSOW-C weapons,
logistics support and ancillary hardware under the contract.  Work is expected
to be completed in February 2007.

    Assistant Secretary of the Navy for Research, Development and Acquisition
John J. Young Jr. approved full-rate production after the weapon completed a
highly successful series of Navy operational tests.  The tests included a wide
array of targets ranging from radar sites to caves and hardened bunkers and
upon completion the JSOW-C was graded as "operationally effective and
suitable" for military use.

    "I am pleased with the weapon's performance in operational test, and I
commend Raytheon on their aggressive cost reduction program and the resulting
significant reduction in the weapon's price tag.  To encourage further cost
reduction measures, I have approved buy-to-budget authority so that future
weapon savings may be reinvested in the procurement of additional weapons in
order to encourage further cost reductions," Young said.

    "We are proud to be providing the Navy with this very affordable weapon.
The JSOW-C unitary/penetrator variant offers the Navy greatly increased
capabilities, with long standoff range and precision accuracy against critical
targets," said Ron Shields, Raytheon's JSOW program director.

    JSOW-C was developed by a team that includes the U.S. Navy, Raytheon
Company, BAE Systems and Thales Missile Electronics.

    JSOW-C incorporates a Raytheon-developed uncooled, long-wave infrared
seeker with automatic target acquisition algorithms, providing the Navy a
launch-and-leave weapon with a long range standoff precision strike
capability.  JSOW-C is the first U.S. weapon to incorporate the two stage
broach blast fragmentation/penetration warhead, developed by the United
Kingdom's BAE Systems.  Thales provides the fuze.  JSOW-C has a unique
capability for a glide weapon in its ability to attack a hardened target in a
near-horizontal mode.

    JSOW-C is integrated on FA-18 aircraft and is compatible with the Joint
Strike Fighter, F-15, F-16, B-1, and B-2 and B-52 aircraft.  It has been
selected by Poland for use on its F-16s.

    The first production missiles ordered under a previous low-rate initial
production contract in July 2003 were delivered to the Navy in September 2004.

    JSOW is a joint Navy and Air Force program.  It is a family of low-cost,
highly survivable, air-to-ground weapons employing an integrated Global
Positioning System/Inertial Navigation system that guides the weapon to the
target.  More than 400 JSOW-As have been used in combat operations to date.

    The JSOW family uses a common and modular weapon body capable of carrying
a variety of payloads and handling multiple missions.  Its long demonstrated
standoff range of 63 nautical miles allows delivery from well outside the
lethal range of most enemy air defenses.

    The AGM-154A (also called JSOW-A) variant dispenses BLU-97 combined-effect
bomblets for use against soft and area targets.  It is produced for use on the
Joint Strike Fighter, F/A-18, F-16, F-15E, B-1, B-2 and B-52 aircraft.

    The Navy/Raytheon team is developing a Block II configuration of the JSOW
weapon system that provides significant cost reductions to all JSOW versions.
The first Block II configuration weapons will be delivered in 2007.
Additionally, other JSOW improvements are under way to add anti-ship
capability, reduce unexploded ordnance, hit moving targets, provide bomb hit
indication, provide network capability and further reduce costs.

    Raytheon Company, with 2004 sales of $20.2 billion, is an industry leader
in defense and government electronics, space, information technology,
technical services, and business and special mission aircraft.  With
headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide.

    Note to editors: This contract was initially announced by the Department
of Defense on Dec. 23, 2004.

   Alan D. Fischer

SOURCE: Raytheon Company

Web site:  http://www.raytheon.com/

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